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I am a licensed professional engineer specializing in control systems. I originate from near Liverpool England and now live in Maui, Hawaii - which gives me a sense of great achievement :) I am a long term investor with 30 years experience and a focus on businesses with exceptionally high growth... More
Kandi Simply Explained, And Its Valuation 2
2014 Q4 10K Update....
Kandi has been quietly progressing for several years manufacturing a variety of products, now known as its legacy business. During this time, Kandi was developing its Electric Vehicle [EV] technology and production capability as a first mover. In about 18 months, Kandi has transformed itself into the leading Chinese EV manufacturer it was always intended to be. The new Kandi EV business model consists of 3 entities, Kandi, the Kandi JV and ZZY. Although ZZY is essentially independent, these 3 entities operate under the Kandi brand and Kandi management, and their operations are often reported in the media as "Kandi." The Kandi business model was conceived by Mr Xiaoming Hu, Kandi Chairman/CEO and Kandi JV Chairman, who manages the overall operation. The 3 entities form a supply chain: Kandi sells parts to the Kandi JV, the Kandi JV sells EVs to ZZY, and ZZY rents or leases EVs to the public. The Kandi JV makes direct sales to government and corporate and just announced it will commence direct sales to the public.
Kandi Business Model
Kandi continues operating the more profitable components of its legacy business, continues manufacturing EV parts to supply the ever-growing needs of the Kandi JV, receives 50% of the Kandi JV profits. Kandi continues to be the brains and management behind the business model operation, hiring, innovation, R&D, government relations and individual city government negotiations.
The Kandi JV manufactures and sells EVs, primarily to ZZY. It is a 50/50 partnership with Geely, the largest auto manufacturer in China (and owner of Volvo). Both Kandi and Geely have transferred manufacturing facilities into the JV and additional manufacturing facilities are currently under construction in Hainan and Jiangsu Provinces. Kandi and Geely will both be equally responsible for the planned additional manufacturing facilities as the Kandi JV grows rapidly. Production capacity is 230,000 EVs/year with 1 shift, expanding to 430,000 EVs/year with 1 shift. Soon, due to this rapid growth, the Kandi JV entity will dwarf Kandi.
ZZY (aka Zhejiang ZuoZhongYou Electric Vehicle Service Co.) is 19% owned by the Kandi JV and 81% owned by Jia Xing Jia Le Investment Partnership Enterprise. This gives Kandi a 9.5% interest. ZZY is the revenue engine for the business model. ZZY purchases only Kandi model EVs, from the Kandi JV. The cost of the EVs, after applying central and local government subsidies, is approximately 30% of full sale price. ZZY therefore has reduced capital costs and can offer competitive pricing. ZZY raises revenue through 3 programs, collectively called Micro Public Transportation:
Car-Share Program which is an extension of the city public transport system, similar to existing bike-share programs. Users rent by the hour from/to multiple locations within the city and the cost is much cheaper than would be taxi. Renters can reserve and pay via Alibaba's mobile Alipay with no deposit required.
Group Long Term Lease Program available for residential communities via their community organization, or business enterprises, or government entities. Leases are normally for 3 years.
Individual Long Term Lease Program. Leases are for 1, 2 or 3 years and cost is higher than for Group Leasing.
Subsidies
National government subsidies are claimed by the Kandi JV at the end of each quarter and payments are received about 4- 5 months later. The Kandi JV sells the EVs with the subsidy deducted and the subsidy amount goes into the Kandi JV's accounts receivable until the national subsidy is paid. Local government subsidies are claimed by the buyer, predominantly ZZY and paid after a yet to be determined delay. In the meantime the increasing subsidy amounts that are due to ZZY go into ZZY's accounts receivable. Local governments have procrastinated, firstly in passing the subsidy laws and secondly in implementing the administration. Different local governments are at different levels of progress. Since local governments are in contract agreements with the national government it is certain that the local subsidies will be paid.
The national government has declared that subsidies will be extended through 2020. 2020 is also the national government's target for having 5 million NEVs on the roads. NEVs (new energy vehicles) include Hybrid EVs and Pure EVs. Since 5 million will be only 1/50 of the cars and trucks currently on the road, expect the subsidies to be extended beyond 2020. When subsidies finally end the market will be huge and mass production costs will be much lower, and battery technology much improved and also with much lower costs.
Market Forces
In the past year the China Central Government and Local Governments have declared war on the internal combustion engine (NYSE:ICE) vehicles. Government is compelled to do this due to deadly pollution levels and to protect their economy from future astronomic increases in oil imports. They are additionally developing a strong EV manufacturing base that can dominate world trade as ICE vehicles gradually become extinct. Government has introduced many deterrents to ICE ownership and obstructions to their operation. At the same time they have introduced incentives to ownership of EVs and benefits to their operation. Inevitably, public demand is moving from ICEs to EVs.
China has a population of 1,368 million. In 2014 annual car and truck sales, almost all ICE powered, reached 23.5 million units. At a 9% annual growth rate 2020 car and truck sales will reach 39.4 million units - a huge and still growing market. What percentage of this market will be buying an NEV in 2020 after 6 more years of government pressure and technological development? In 2014 the China NEV annual growth rate was 380%. Pause and think about that - now give this paragraph a 2nd read.
Kandi Growth
Kandi's FY 2014 showed that Kandi has returned to profitability. This is nice but the real key to Kandi's value is GROWTH. For 2014 over 2013 Kandi's income statement top line appears to show growth was 1.8x but that would be an incorrect assumption because it excludes Kandi's primary business, EV manufacturing. Kandi reported elsewhere the Kandi JV top line which appears to show growth was 14.2x. This is also misleading because EV manufacturing operations were transferred from Kandi's financials to the Kandi JV's financials in 2014 and true growth rate cannot be determined without looking at both sets of financials. Kandi's earnings PR failed to even mention growth rate, leaving investors to figure it out for themselves. Since Kandi owns 50% of the Kandi JV:
Revenue = 100% Kandi Revenue + 50% Kandi JV Revenue
2014: $170,229,006 + $107,768,602 = $277,997,608
2013: $94,536,045 + $7,606,174 = $102,142,219
Kandi's complete business GROWTH was 2.7x
In 2013 Kandi sold 4,694 EVs, of which 3,463 went into the ZZY Micro Public Transportation program. In 2014, the new Kandi JV sold 10,935 EVs, all of which went into the ZZY Micro Public Transportation program. The Micro Public Transportation sales increased 3.2x and a similar increase is very likely in 2015 as cities and provinces move to meet their 2015 target commitments to the central government which total 500,000 NEVs.
At the end of 2014Q3 Kandi had sold EVs to ZZY in Hangzhou and Shanghai. At the end of 2014Q4 Kandi had expanded EV sales to 9 cities, mainly provincial capitals: Hangzhou, Shanghai, Chengdu, Nanjing, Guangzhou, Wuhan, Changsha, Changzhou and Rugao. The total EVs in Micro Public Transportation was 14,398, up from 3,463 one year earlier, up 4.2x. Most Chinese cities have populations of several million and Shanghai 22 million. Hangzhou has a population of 6 million and the original estimate of Micro Public Transportation EVs required was 100,000. The 2014Q4 total of 14,398 is therefore just the beginning.
Future Progress
Many more 1st and 2nd tier cities are interested or currently in negotiations with Kandi and ZZY. News could break on Beijing, Zhengzhou, Haikou and Shenzhen. Hainan and Jiangsu provinces (where Kandi will soon complete building new manufacturing facilities) each have agreements to put a minimum of 20,000 Kandi EVs into service per year. In January 2015 Kandi made its first sales to government.
ZZY is at the beginning of an exponential growth phase. ZZY purchases have enabled the Kandi JV to be the top Pure EV seller in China in 2014 with 10,935 units sold. Kandi is ranked 10th in world NEV sales and 4th in Pure EV Sales - and Kandi is only selling in China. In 2015 3x 2014 growth in EV sales should be easily achieved due to government targets, pressure and incentives. Mr Hu expects production (and therefore sales) to reach 100,000 EVs/year within 1 to 2 years.
In 2015 Kandi will release 4 new technologically advanced models, the not yet named SMA7002BEV05 (luxury sedan), the Cyclone (sedan), City Beauty (mini) and City Cowboy (mini). The new models will have improved technology batteries providing increased driving range and longer battery life at less cost. The luxury sedan will target government and enterprise fleet sales and leasing. Central and local governments are mandated to have 30% new energy vehicles (NYSE:NEV) by 2016 and this percentage will be increased beyond 2016.
Improving technology is the basis for Kandi's decision to commence direct sales to the public and therefore it is only relevant to the new models. This will be a second revenue generator in addition to sales to ZZY and government. Geely already has nearly 1,000 sales outlets (4S stores) throughout China and nearly 200 abroad, and is the owner of Volvo which has many more sales outlets. A direct sales network is already in place.
Valuation - based on 14Q3+Q4
Method:
Slow-growth and no-growth businesses can be evaluated based on earnings (preferably adjusted earnings) and therefore their P/E ratio can be used for valuation. Kandi has solid earnings (unlike fellow EV manufacturer Tesla) but at this stage of growth those earnings are not representative of Kandi's true value.
Start-ups and high growth businesses often have no/low earnings (due to the extra costs of growing a business) and therefore their Price/Sales (P/S) ratio is best used for valuation. Businesses in this category can support high P/S ratios, e.g. Baidu (NASDAQ:BIDU) 9, Facebook (NASDAQ:FB) 18, Google (NASDAQ:GOOG) 6, LinkedIn (NYSE:LNKD) 15, Alibaba (NYSE:BABA) 19, Tesla (NASDAQ:TSLA) 8 (was previously 12), Kandi (NASDAQ:KNDI) 3.5 GAAP [2.2 non-GAAP].
Kandi's EV business is a start-up and a high growth business with a disruptive technology and can therefore support a P/S ratio greater than 6. I am tempted to choose in Tesla's range of 8 to 12, but to be conservative I will use a P/S ratio of 6. If P/S = 6, P = S x 6.
Kandi's financial reporting accounts for its interest in the Kandi JV and ZZY by using the equity method and therefore does not consolidate the Kandi JV and ZZY revenues into its financials. The reported revenue excludes Kandi's primary business, EV manufacturing, and tertiary business, EV rental/leasing. A proportion of the Kandi JV and ZZY sales revenues are attributable to Kandi using non-GAAP accounting. For business valuation purposes it is appropriate to combine sales revenues from all parts of Kandi's business.
i.e. Sales = 100% Kandi Sales + 50% Kandi JV Sales + 9.5% ZZY Sales.
Since ZZY Sales have not been disclosed, I will conservatively exclude that entity from the calculation.
Since Kandi's business growth rate is high, I will use the last 2 quarters sales (as most relevant) and x2 to create an annualized value.
Calculation:
All values taken from 2014 Q3 10Q and 2014 Q4 10K
Q3+Q4 Sales = (100% x $97,097,657) + (50% x $135,620,966) = $164,908,140
Q2+Q3 Sales Annualized = $164,908,140 x 2 = $329,816,280
Weighted Average Diluted Number of Shares = 43,530,185
Sales Per Share = $329,816,280 / 43,530,185 = $7.58
Price Per Share = $7.58 x 6 = $45.48
Share Value as of December 31 2014 = $45.48
The above is a trailing valuation, not a forward valuation.
Trailing valuations are based on hard facts whereas forward valuations are based on informed guesses.
The Kandi JV sold 10,935 EVs in 2014.
Those that study Kandi guess that the Kandi JV will sell 30,000 to 50,000 EVs in 2015.
There may be additional shares issued, although Company has stated it will not be necessary.
My conservative guess is that in Q3+Q4 2015, Sales Per Share will be at least triple to $22.74
Forward Price Per Share = $22.74 x 6 = $136.44
Forward Share Valuation for December 31 2015 = $136.44
PPS Analysis
Why is the current share price ($13.02) severely lagging the trailing valuation?
Four reasons...
Poor investor relations. Lack of communication. Communication with understatement, brevity and poor word choice and no concept of Wall Street marketing. This may be tempered soon because Kandi will be hiring a well known US PR firm. It will likely be a partial solution because management in China will likely continue to hold back information. Kandi also fails to release monthly production and sales numbers to the Chinese media resulting in it looking bad in comparison to other EV manufacturers. The Company's website is not used effectively and the server is often inaccessible. The veil of secrecy may be a deliberate strategy to keep ahead of the competition.
Hedge fund short manipulation. Short has sustained a major loss, is trapped, pays average of 60% APR to borrow shares, and incurs additional losses to control the trend. Short interest is currently 1.2 million below its all time high at 6,781,969 on 2/27. This is like a coiled spring under the stock price. Kandi will produce a steady stream of good news as the business expands, eventually triggering a release of the energy stored in the spring. The result will be a short squeeze or a series of mini short squeezes.
Many investors do not do serious due diligence and their perception of value is based on current stock price and recent trend. This enables the hedge fund short to control the trend - until he can't.
It is normal for share prices to be either much lower or much higher than reasonable valuation for micro and small cap stocks. When a business is succeeding, the transition from much lower to much higher can happen rapidly.
Common Questions
1. Are you recognizing Kandi sales to the Kandi JV twice?
No but at first glance it appears so.
Only profit is of value, not sales. However P/S ratio is a valuation method used in start-up/high growth stages of a business when profit is negative/zero/spotty. Currently both Kandi and the Kandi JV profits cannot be considered as a reliable basis for valuation. For sales based valuation, the sales used have to be indicative of future profit as the business matures.
The Kandi JV will buy parts from various parts manufacturers including Kandi. Kandi sells parts at market price. Buying from Kandi is a legitimate "cost of sales" that does not diminish gross margin and indication of future profit. Therefore 50% of the Kandi JV sales are attributable to Kandi for P/S valuation purposes. It is immaterial that Kandi is one of the parts manufacturers.
Parts is one of Kandi's new high growth revenue channels and it makes little difference whether it sells parts to the Kandi JV or any other EV manufacturer since Kandi sells the parts at market price. Parts sales have their own independent gross margin and indication of future profit.
On this basis both sets of sales are indicative of separate future profits and can legitimately be attributed to Kandi for P/S valuation purposes.
2. Is Kandi selling to itself?
No under GAAP rules which Kandi follows. Yes in lay terms because we can say that the Kandi JV is 50% self and ZZY is 9.5% self, however it would be better for investors if each was 100% self.
If Kandi owned 100% of the Kandi JV and 100% of ZZY it would be better for Kandi investors because they would get all the profit from all 3 stages of the supply chain. Of course, if this was the case, Kandi would be following GAAP rules and restructuring its financials differently.
Shorts tell lies via distortion and innuendo and have been blurring the distinctions in GAAP reporting rules by saying Kandi is selling to itself and inferring that this is both fraudulent and bad for investors. Tell that to an oil company that owns a supply chain producing, refining and marketing product.
3. How can you justify valuation with a P/S of 6 when Ford has a P/S of 0.44?
Growth rate and future growth rate are the primary justification.
Ford is a lumbering giant, not a growth stock, and its valuation is largely based on earnings. Modest growth over 3 years is likely to have less affect on earnings than other factors. Investors are pricing the company for low growth, which causes the P/S to be very low.
Tesla (TSLA) has a P/S of 8 with no earnings and no prospect of significant earnings for 5 years. Current earnings is not of prime importance to growth investors. Investors are pricing the company based on growth and growth prospects, and they presume that after growth will come earnings. Analysts are predicting a Tesla growth rate of almost 2x per year.
Kandi is already growing earnings. In 2014/2013 Kandi's attributable revenue growth was 2.7x, and this is at the same time as transitioning EV manufacturing operations from Kandi to the Kandi JV. EV unit sales growth was 2.3x but due to unit price increases, EV $ sales growth was 4.6x. EV unit sales into ZZY Micro Public Transportation growth was 3.2x. The market forces in 2015 are greater than in 2014. I therefore conservatively expect Kandi growth rate and future growth rate to be >3x.
Take a 3 year period: Tesla is expected to grow <2x per year, so total growth is <6x and this warrants a P/S of 8. If Kandi grows 3x per year, total growth is 27x and this therefore warrants a P/S of [off the scale]. To be conservative let's just say Kandi warrants a higher P/S than Tesla but to be ultra conservative I choose a lower P/S than Tesla, i.e. 6.
4. Will Kandi face competition?
Yes. The growth prospects are irresistible but Kandi is a 1st mover and 2014 EV sales leader.
5. Why is air pollution in China a major force for change?
Watch the brilliant, moving, explicit Chinese documentary "Under the Dome."
6. Who is Mr Xiaoming Hu?
An engineer and entrepreneur with strong business and political associations, well respected within the PRC and frequently honored.
From Bloomberg: Mr. Xiaoming Hu has been Chief Executive Officer and President of Kandi Technologies Group, Inc. since June 29, 2007. From October 2003 to April 2005, Mr. Hu served as the Project Manager and Chief Scientist in the PRC Pure Electric Vehicle Development Project. From October 1984 to March 2003, he served as a Factory Director in Yongkang Instrument Factory, Factory Director in Yongkang Mini Car Factory, Chairman and General Manager in Yongkang Vehicle Company, General Manager in Wan Xiang Electric Vehicle Developing Center, and General Manager in Wan Xiang Battery Company. He owns 3 Invention patents, 5 utility model patents, over 10 appearance design patents.
Uber drivers in Chicago start testing electric cars
Chicago now serves as home to an Uber fleet comprised of 25 all-electric cars. They're not Tesla Model S vehicles like that Uber ride Engadget's editors hailed back in 2013, though -- they're BYD e6 EVs straight from China. Uber has teamed up with Chinese automaker BYD or "Build Your Dream" in an effort to help its drivers either buy or lease new cars. While it seems odd that the company has chosen to partner with BYD instead of with manufacturers more well-known in the country like Tesla, e6s are larger than many other EVs. It's already being used by a chauffer service in London (and a taxi company in Hong Kong) for that reason.
One downside, though, is that it only has a range of 186 miles on a single charge, whereas a Model S has a 265-mile range. Speaking of batteries: BYD aims to triple its EV battery production as a preemptive measure against Tesla, which is planning its own gigafactory. The Chinese company, which already has manufacturing plants in the US, will add 6 gigawatt hours of global production per year within the next three years.
The 25 e6s roaming the city came from local dealership Green Wheels USA, which offers Uber drivers a number of payment options, including traditional lease-to-own programs. At the moment, most drivers seem to prefer paying the dealership $200 per week to rent the EV. That option allows them to bring back the cars to Green Wheels' lot for recharge after their driving shift.
"The company wishes to announce that it's FORM 8K is now officially in the filing queue and therefore is pleased to announce that the following will be released to the newswire at 6:30 AM Eastern Time tomorrow"
TREATY Energy Corporation Adds Three Directors with Industry or Financial Executive Experience, Engages New Auditor and Has Commenced Regulatory Filings to Increase Authorized Common Shares
NEW ORLEANS – Mar 17, 2015 -- TREATY Energy Corporation (OTCQB: TECO), a growth-oriented energy company in the oil and gas industry (sometimes referred to as the “Company”), today announced certain actions and changes that its leadership team believes will improve the Company’s operations and decision making capabilities.
Addition of Three Directors Increases the Board of Directors to Five Directors:
Chris D. Tesarski, Chairman and CEO of the Company, stated, “We are extremely pleased that three of our shareholders have stepped up to the plate to assist in the leadership and direction of our Board of Directors, particularly in view of the recent departure of the third Board Member, Mr. Ghosh. The following shareholders have agreed to accept appointment as non-executive Directors of the Board of TECO to join the current two members of the Board: Mr. Oral Glasco; Mr. John J. ‘Sean’ Hickey; and Mr. David Taylor. We may, of course, also reach out to other shareholders to serve in an advisory capacity to the Board.”
Mr. Tesarski added, “Each of these new Directors has agreed to serve the BOD as Director. Because the addition of three members to the Board constitutes a “change of control,” the applicable Section 14(f) of the Securities Exchange Act of 1934 (the “Exchange Act’) provides that, prior to the time any such person takes office as a director…,the issuer shall file with the Commission, and transmit to all holders of record of securities of the issuer…” the Schedule 14-F Change of Control Information Statement. In turn, Rule 14f-1 provides that such Schedule shall be forwarded to all shareholders “…not less than 10 days prior to the date any such person[s] take office as a director...,” hereafter the “Effective Date.” Upon the Effective Date as so defined, the three prospectively appointed Directors will be added:
Oral Glasco, 70, retired General Manager of The Alma Telephone Co, established five subsidiary companies and partnerships (Internet, Cellular Systems and Fiber optic networks) that span Missouri and now the U.S. An 8-year veteran of the U.S. Air Force serving in Vietnam who received the Air Force Commendation Medal for Distinguished Service, Mr. Glasco also served as an Instructor in the “Air Training Command.” In addition, he has been an investor in oil and gas opportunities since 1977 in Southern Illinois, Texas and Mississippi with extensive experience evaluating drilling operations and production leases. Mr. Glasco resides in Missouri.
John J. “Sean” Hickey, 62, retired federal agent and CPA. Mr. Hickey had a career with the federal government and, since retiring, has been involved on a consulting basis to several large firms regarding corporate research and investigatory work. Mr. Hickey has decades of accounting, investigatory and audit experience. Mr. Hickey resides in North Carolina.
David Taylor, 66, a 1971 business school graduate, had a long career in the energy/petrochemical industries, with more than ten years at the Unocal Refinery handling crude oil logistics. Mr. Taylor has spent the last 20-plus years in S.E. Texas/S.W. Louisiana in the petrochemical and oilfield service industry in a managerial capacity for several regional and national industrial supply firms, gaining oil and gas business acumen and industry experience. Mr. Taylor resides in Texas.
Mr. Tesarski stated further, “I will continue to serve the Company as Chairman of the Board of Directors and Andrew L. Kramer, the Company’s VP, General Counsel and Corporate Secretary, will continue to serve as a Director. Rana Ghosh, a gentleman that came to the Board in July 2014, resigned as a Director in November 2014 due to professional conflicts and personal obligations.”
Upon the Effective Date, TECO’s current management believes that the Board will have the requisite depth, wisdom and experience to prosecute its business plan, including being sensitive to guidance and direction from our loyal shareholders. Upon the Effective Date, the three new Directors have agreed to give their time and expertise to help TECO move forward, despite the recent challenges and obstacles, and concurrently seeking to redirect the energy and strategies needed and contemplated to go forward.
TREATY Engages New Auditor:
Mr. Tesarski stated, “Treaty Energy Corporation is pleased to announce that BF Borgers CPA PC of Colorado was engaged by the Company, effective March 11, 2015. The Company’s new Auditor will provide the necessary services to audit and finalize financial filings for the years ended December 31, 2013 and 2014.”
Increase in Authorized Shares of Common Stock:
On March 12, 2015, the Company amended its Articles of Incorporation with the State of Nevada to increase the total number of authorized shares of common stock to 2,250,000,000, an increase of 300,000,000 shares. The Company also has 50,000,000 shares of preferred stock authorized.
New securities counsel (engaged by the Company on February 23, 2015) has advised the Company that such increase is not effective until the Company has prepared and filed a Schedule 14-C Information Statement—in lieu of a shareholder vote and/or Proxy Statement--required of Section 12(g) companies.
Specifically, Section 14(c) of the Exchange Act (as defined above) provides that, in lieu of a vote taken of shareholders pursuant to a Proxy Statement, “…such issuer shall in accordance with the rules of the Commission and transmit to all holders of record such security information substantively equivalent to the information which would be required to be transmitted if a solicitation were made…”; and Rule 14c-5 of the Exchange Act requires that the associated Schedule 14-C “…shall be filed with the Commission at least 10 calendar days prior to the date definitive copies of such statement are first sent or given to security holders…” New Company management has instructed securities counsel to prepare and file the Schedule 14-C immediately, the current and prospective Board now being aware that the proposed increase in common shares is not effective under the applicable Rules 14c-1 et al until such Information Statement is filed, copies are sent to all Company shareholders and, thereafter, 10 days have passed.
Those cumulative actions are currently expected to be concluded in early April—at which point any share issuances deferred by the Company will be then be consummated post-haste.
In that context, the Company’s stakeholders should be aware that the Board recognized a need to issue about 110,000,000 shares of stock to satisfy prior obligations to a group of shareholders. Further, once these shares are issued to this group of shareholders, the Company will have about 200,000,000 shares of unissued Common Stock available for general corporate purposes.
The Board also reviewed and ratified certain controls and restrictions on the future issuance of these remaining “available-but-unissued” shares, and restricted any further issuance until and unless: (a) the stock is again trading on the OTC Markets trading platform (showing Bid/Ask prices) and (b) the stock has achieved a “price per share” considered acceptable to the Board.
Oil & Gas Agreement with Calgary-based Energy Group:
Treaty Energy Corporation has entered into a Trust Agreement with ALBERTACO, a Calgary-based oil and gas group. Under the Agreement, ALBERTACO has committed to sell to the Company (i) a 25% working interest in properties in the Grouard/Roussard/Peace River Arch area designated “PR LANDS” and (ii) the right to participate in to two (2) separate Farm-Out Agreements for a total cost of $250,000 (CDN).
However, because the Company does not currently have the resources available to pay for the PR LANDS interest, ALBERTACO has agreed to hold this interest in trust and loan the Company its share of the proceeds from the PR Lands interest, which is projected to be approximately $10,000-$15,000 per month dependent on commodity pricing, for the next six (6) months.
If Treaty Energy Corporation is able to fulfill the terms of the Farm-Out Agreements by August 31, 2015, then the Company can exercise its right to purchase the PR LANDS interest, which is projected to produce approximately 25 BPD of oil, gas, and natural gas liquids, and to participate in the two (2) Farm-Out Agreements, the combined production of which is projected to be approximately 200 BPD of oil, gas, and natural gas liquids, for $250,000 (CDN) maximum.
If Treaty Energy Corporation is unable to fulfill the terms either of the two (2) Farm-Out Agreements by October 31, 2015, then the Company would be required to pay ALBERTACO $250,000 (CDN) plus any funds advanced to the Company in order to purchase the PR LANDS interest and the right to participate in the two (2) Farm-Out Agreements. Should the Company acquire the PR LANDS interest but fail to fulfill its obligations under either of the two (2) Farm-Out Agreements, the right to participate in the two (2) Farm-Out Agreements would automatically expire on December 31, 2015, unless both parties agree in writing to an extension. Alternatively, the Company continues to retain the right to decline the purchase the PR LANDS interest and the right to participate in the two (2) Farm-Out Agreements at any time, in which event it would be required to repay ALBERTACO whatever funds it has advanced, including interest at an annual rate of 12.5%, by December 31, 2015.
Contact:
TREATY Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-524-6987
Company Links
Website: http://www.treatyenergy.com
Facebook: https://www.facebook.com/TreatyEnergyCorp
Twitter: https://twitter.com/TreatyEnergyCo
About TREATY Energy Corporation
TREATY, a developmental stage energy company, is engaged in the acquisition, development and production of oil and natural gas. TREATY acquires and develops oil and gas leases which have "proven but undeveloped reserves" at the time of acquisition. These properties are not strategic to large exploration-oriented oil and gas companies. This strategy allows TREATY to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration.
Forward-Looking Statements
Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other
(Reporter Medan) Yesterday, our sixth "Year of the first garages Exhibition" opened in Wuhan International Convention and Exhibition Center, from 9:00 to 17:00, ten thousand people come to room tours car products, number of exhibitors had a productive session, many people scouring the car. Another day the show today, people want to buy a car to hurry up.
Chevrolet Hall wins the eye
http://cjrb.cjn.cn/html/2015-03/15/content_5424866.htm
Chevrolet specially built 300 square meters of luxury showrooms, bringing create cool, new Cruze and other 6 BEAUTIFUL. Inside a crowded hall, flooded. Chevrolet newspaper for the show has been very great importance to the organization, this is the sixth time in the name of Central China exhibitors, five dealers in Wuhan all attend, not only to build a luxurious hall and exhibition specially formulated preferential policies ushered in one fell swoop Goat's opener.
Wang Xin Chevrolet Central Regional media, public relations manager: "Changjiang Daily New Year first garages exhibition is a traditional brand exhibition, has a good reputation in the industry, we are participating for five consecutive years, annual sales last year made a good show to sell. More than 100 units. The day has sold 58 units, I hope this year could exceed last year's sales. "
SUV crowds
SUV yesterday show scene, whether it is their own brands, a joint venture brands or imported brands are favored.
SUV of the most popular non-none other than the Great Wall. Yesterday, in front of the Great Wall SUV show car, waiting for the car to experience the people lined up. Dealer Automotive Services Ltd. Wuhan Yuan Hua Meng Lei told reporters manager, specifically for this show are given 3,000 yuan spree. Yesterday, learned a lot, sold a total of 12 units.Owner Mr. Liu told reporters that he chose the Great Wall SUV for two main reasons, one cost-effective, beautiful appearance configure high and relatively low price; the second is the maintenance is to force five years 150,000 km free maintenance.
Beijing Hyundai Motor joint venture brands of eye-catching performance SUV.Wuhan ??? Thai Auto Sales & Service Co., Ltd., told reporters, yesterday sold a total of five cars a day, which is three SUV.
Pure electric vehicles do not sell rent
Left, right, electric car rental Wuhan Co. brought two electric cars. While Booth is in an obscure corner, but it is one of yesterday's most popular show car. Both cars are unlucky Condi pure electric car, the appearance of small and killer, both young and old, all through the public will have close contact with the car lot. Many people also carefully asking price.
The company harvested beyond surprise, general manager Cai Qingyun, told reporters on the day of the show on a deal of 12, a company rented eight breath, put away a station on the same day.
It is understood that rented eight electric car company in Hubei Industrial Group Spring Meeting. The company responsible person, eight cars are used to employees, the reason so many one-time set, one car travel needs of employees; the second is that the car is new energy vehicles, very environmentally friendly; the third is government support vehicles low cost, no insurance, do not pay ETC toll, nor maintenance costs; four is not subject to restrictions odd and even numbers.
Who lives in Wuchang Liu told reporters. The home has a car, I usually he, his wife from home to only 4 km away from the company, then buy a high car costs, rent a car electric car is a good choice.
Link
Restriction lifted
Large popular
Yesterday Wuhan International Convention and Exhibition Center Plaza, held in conjunction with the show still has a long newspaper boutique exhibitions, nearly 20 properties from Fuxing Fitch, Vanke, Hengda, Forte, Tak Bai Chang and dozens fangqi site the introduction of preferential housing, attracting many buyers. Among them, particularly benefit from the lifting of the restriction to improve the type of buyers in the majority.
Yesterday morning, garages exhibition has just begun, there is a lot of buyers come to ask the specific location of exhibitions. Mr. Wang, who lives in the way of wisdom with the view of the room, she told reporters that the family has just added a grandson, the son of the lake after a day between home feel inconvenient to think to see whether the big house, "helping They buy large sets, the family living together can take care of each other. "
It is understood that last year, after the lifting of restrictions on the purchase of the property market in Wuhan, the market turnover was increased. Because supply continued to increase, especially in February to increase the city's 1.27 million square meters of new housing supply, doubling from a year earlier, making prices fell slightly, which makes a lot of intention to buy a big house to improve the living conditions of the people see hope.According to reports, yesterday Hengda, Hengda century tourist city, Fuxing Washington, Fuxing Fitch Hongqiao Town, Shanghai Forte Land Sea and other real estate, consulting on the amount of one hundred cases have day.
In addition, Chang Bai Wuhan city Nortel wholesale suppliers, Decheng Wuhan SOHO and other investment products to attract a lot of investors.
The rise of the electric car rental Wujin "Under the Dome" is now a new way to travel People
Kandi Technologies] The rise of the electric car rental Wujin "Under the Dome" is now a new way to travel
People
1. ? of the 500 EVs have been leased out, with promising business outlook
2. Leasing deal: for one year rental-5,000 Yuan deposit, and 11,000 Yuan fee (including rent, insurance, and maintenance) [note: this article doesn't mention what types of lease are offered; the information here is just from an individual case]
3. well-received among the working-class and in suburban/rural area
4. the biggest obstacles in promoting the leasing program in Wujin:
underdeveloped infrastructure: so far, only downtown area has 2 high-speed charging facilities, while the rural districts where the EVs are more popular have no charging station;
inaccurate impression of micro-size EVs: people usually mix them up with the illegal low-speed EVs, which are running all over the city.
By the end of February, former CCTV host Chaijing million expense survey produced haze video "Under the Dome" widely disseminated in the network, causing great concern.Video describes the vehicle emissions is one of the reasons for the formation of haze, environmental issues and energy use for a time become a topic of public discussion.
With environmental issues outstanding, improve industrial and social development of the environmental pollution caused by technological progress is imminent, then to green energy
Tianneng Power International, the biggest supplier of batteries for low-speed electric vehicles in China, is expanding production capacity this year to meet surging demand.
The battery maker will produce up to 1 million lithium batteries a day by year end -- double its current capacity, Chairman Zhang Tianren said in an interview last week in Beijing, where he attended the National People's Congress.
The Zhejiang province-based company also will double the number of lead-acid batteries it can make this year, he said.
"There is huge demand for batteries as sales of low-speed electric cars are expected to more than double to half a million units this year," Zhang said. "Our operations will see great improvement this year."
Chinese automakers are expanding production of low-speed EVs to meet demand for affordable transportation by consumers in urban areas amid a government push to promote less-polluting modes of transportation.
These EVs typically have top speeds of 80 kilometers per hour. They are popular in smaller cities and rural areas because they are cheaper than regular cars and cost less to operate.
Tianneng can supply only two or three automakers with its existing production of the higher-margin lithium batteries, Zhang said.
The company had a 51 percent share of the market for batteries used in urban mini-EVs in China in 2013, according to its report posted in September. Customers include Chery Automobile Co., Kandi Technologies Group Co. and SAIC Motor Corp., the company said.
The company launched new models under the revived Geely brand, and it also streamlined its dealership network. Geely's sales decline sharply from February to December, but sales beg
The capital inflow on financing and in the stock will be nothing short of monumental moving forward after this initial order....
We're still in the embryonic stages.
After so many years of reading about this technology, I can't wait to see it in action.
With just the 5000 devices out there. it'll spread like wildfire....
Next order will have to be much larger just to accommodate the techies............
The stock could surely rocket in the pennies in no time....
BULL
I'm buying 2.........
Keep rolling......
BULL
Forced new energy vehicles under the policy is expected to enter as policy.
http://www.guuzhang.com/forum.php?mod=viewthread&tid=7862
Kandi Car Pictures...
http://www.yfcar.net/content/?96.html
http://auto.huanqiu.com/roll/2015-03/5827835.html
Six reached a total of 115,000 new energy automobile brand marketing plan inventory
2015-03-05 17:52:00first electric networkshare
Participate
2015 is the national development of new energy vehicles planning key nodes, plan to achieve 500,000 scale holdings. In the final sprint of this year, the major new energy car prices will behave? Electric Mobility first interview by a Proton potential, Chang'an, Condi, know beans, Kai Chen, Chung-tai six brand new energy vehicles to promote the objectives of the total in 2015 to promote this program only six reached 115,000. Plus five car prices and sales on an inventory program (see "2015 new car sales plan Which energy intensity? BAIC five car prices BYD inventory"), 11 brands will promote new energy vehicles 232,000.
http://himg2.huanqiu.com/attachment2010/2015/0305/20150305055144469.png
Chang: 2000
Compared BYD, Chery, Beijing Automotive and other independent brands, Changan layout of the new energy market a little later, mainly in Chongqing, Hangzhou, Kunming and other cities over the demonstration run in the public domain. However, beginning this year, Changan will seek to enter the new energy market, private consumption, March 6 will launch a new electric car - Yat move EV. Yi moving market petrol version sold well, has received its own brand of monthly, quarterly sales champion, also listed as Yi EV move foreshadowing popularity.
Changan new energy vehicles this year sales target is relatively conservative, scheduled for 2000. From the product point of view, the only escape EV move a relatively simple. Comprehensive car mileage of up to 160km, is expected to sell about 200,000, the actual purchase price after deducting the subsidy is around 11 million. (Refer to "pre-empt the evaluation of the first electric Yat move EV") by virtue of such parameters, and Beiqi EV200, JAC iEV5 other pure electric vehicles, competitive advantage is not obvious.
EV Yat move on March 6 listed activities, the Changan Automobile will release new energy strategy. Yi Chang very important action for a model, in terms of quality, demanding details of the optimization, this advantage is expected to continue to the electric version of the model. Chang established a joint venture in Beijing taxi company, and put 100 pure electric vehicles operate. If, as a taxi Yat move EV promotion, hundreds of vehicles into a larger possibility that overall 2000 target to achieve a conservative should not be a problem.
Proton Potential: 5000
As BYD Daimler two advantages of crystallization, Teng potential in the building was given at the beginning of the "real big sell" expectations. From the point of view of product performance, technical experience Daimler repairer centuries has been reflected in the car, from the shape of the interior design to have reached a high level of workmanship. In addition, BYD advantage in battery technology also makes the situation even more powerful Proton, 300 km Mileage exceed the level of the market most similar electric vehicles. Just from the product point of view, this year set a sales target potential Teng 5000 also deserved.
Enjoy two subsidies, Teng potential price of about 26.1 ~ 291,200 yuan, targeting high-end. Following last September have started listing the specific activity of the city, Teng potential in the original city of Beijing, Shanghai, this year sales will be conducted separately in Nanjing, Hangzhou, Wuhan, Guangzhou, Tianjin, Xi'an and other cities will set up 11 years sales and service outlets, covering nine cities.
Teng potential BYD electric car using lithium iron phosphate batteries, previously restricted by BYD battery capacity, only several dozen potential yields soar after 2014 listing. With the new BYD battery factory production, automobile production capacity has improved Proton electric potential, a monthly production of 160. BYD comparative price and mileage of both potential and Teng similar e6,2014 annual sales of 3560, mainly in the public sector to promote the private sales is minimal. Although the situation is better than e6 Teng positioning, quality workmanship, etc., but if we completely rely on the private market to digest the 5000 target is still some difficulties.
Nissan: 8000
Nissan Leaf sales reached 160,000 in the world, is currently the best-selling electric cars, Kai Chen Morrowind hear the wind as the Chinese version, Nissan is looking for the car: 2015 8000 sales, 2018 sales of 500 million.
Kai Chen Morrowind price of 26.78 ~ 281,800 yuan, the price levels to enjoy the subsidies are more than 170,000, compared with the level electric car prices to be much higher. However, the advantage of Kai Chen Morrowind With the Nissan electric car off the field a lot of mature technology, prototype Leaf electric car is the world's first electric car sales, the morning breeze and hear the wind electric car sharing proprietary platform technology interlinked, There do hear the wind market performance reference, Kai Chen Morrowind prospects are not too bad.
Production aspects of Dongfeng Nissan said that since September last year, Kai Chen Morrowind listed orders within two months has reached thousands of vehicles. However, due to tight capacity, vehicle delivery is not much. According to Nissan's plan in 2014 is to import of Kai Chen Morrowind electric vehicles, through the market and the actual test lessons learned, the next 1-2 years to find an effective way to the development of new energy vehicles.
In addition, Nissan established to promote cooperation with Guangzhou, Dalian, into electric vehicles used as taxis. Dalian plans to invest 1000 Morrowind electric vehicles into the public system operators, local consumers to buy Kai Chen Morrowind, in addition to 45,000 yuan enjoy state subsidies, as well as 100,000 yuan in Dalian special fund to promote electric vehicles than any other pilot cities preferential are greater. In Guangzhou, the company has set up a taxi journey will also help to promote the Nissan electric car commercial operation, in addition to the introduction of the taxi industry, also for private rental market. These two stable "customers" will effectively protect Kai Chen Morrowind sales.
Know beans: 50000
Know beans EV Focus compact, lightweight product line, after the price of less than 50,000 yuan of subsidies, is one of the lowest prices in the current models of new energy vehicles. With the "small is beautiful" design and friendly price, know beans in the private market quickly start to shop, total sales in 2014 amounted to 7400, has created a single-day sales record of 205. 2015 50000 know beans set sales target.
Know beans emphasis on electric vehicles and promotional efforts are not to be underestimated. In the country 88 new energy vehicle demonstration cities, the pace has been known beans into 63 cities, each city has more than five service centers, currently totaled 358 service outlets.
50000 sales target emboldened also know from beans and the "new owner" lucky cooperation. Jointly invest 1 billion joint venture, the new company will be lucky Lanzhou base vehicle assets and Shandong Ocean electric car company to integrate, and gradually form an annual production capacity of 300,000 vehicles. This year will also launch three bean-based knowledge platform to build electric vehicles.
Analysis seems to know beans in a market segment positioning precision, productivity and quality are strong protection, and to establish an extensive sales network in 2015 is expected to continue to be the dark horse stance seize new energy vehicle market share.
Condi: 20000
Also miniaturized electric car line, Condi main lease direction, Hangzhou, Shanghai, Chengdu and other places to promote "micro-bus" project and the group rents. Official figures show that as of the end of 2014, Condit had only put in 9850 in Hangzhou, electric vehicles for rental fields. In addition, Shanghai first put 208 electric "micro bus"; 5000 Chengdu market plans to launch electric car rental program, has been on the cards 1000; Changsha plans to invest 1000, has been put on 240.
Condit sales of electric cars in 2014 more than 11,000, "micro-bus" mode is paying off, the future is expected to be fully promoted. "Micro Bus" project execution company - left, right, a company press release plan is put into four internal Hangzhou Condi 100,000 electric vehicles, completed the construction of 17 parking lots. 20000 Condit this year to promote the objectives set, complete possibility is very great.
In addition, the aid Condi auspicious platform to launch electric SUV, the Ministry has received a directory, the other a car Condi whirlwind also notice in the application process. The introduction of the new car will enrich Condit product line, not only enhances the choice and flexibility of leasing, but also offers the possibility for future access to private market.
Zotye (cloud 100): 30000
Zotye new energy vehicles in the queue and goes 100 Zotye know beans, but the ocean has reached a new cooperation with Geely, also by means of the promotion of passenger Honor beans known brands of electric vehicles, production and marketing know beans or inclined to Geely, therefore presented separately Thailand Cloud outstanding sales plan 100.
100 listed in the cloud on the occasion, the Thai public on planned sales in 2014 8000, 2015 sales of 30,000. The car uses a ternary lithium battery life 150km, after Tan Area subsidized price of about 50,000 yuan, trying to break through the advantages of low-cost electric car market. Since last October the market until the end of December, more than two months over 100 cloud Tan sales in 2018. According to the Changsha City traffic police detachment Vehicle Administration data, the Thai public cloud 100 to 1799 results boarded the first car in December 2014 in Changsha on the card standings. While not excluding new energy vehicles, "end effect" sales ascribed factors, but really you can see this kind of low-cost electric car a huge space in the market.
Investors betting on the Chinese automobile market need to factor in how runaway pollution impacts investment potential, warn analysts.
The air Pollution index in China has hit dangerous levels this week with Beijing registering a 168 today and Nanjing hitting a shockingly high 288 yesterday (extremely unhealthy).
Other cities with an "unhealthy" reading on air quality include Guangzhou, Nanjing, Maanshan, Chengdu, Chuzhou, Zhenjiang, Yahgzhou, Wuhu, and Hong Kong.
Reports indicate the Chinese population has become more concerned about the medical ramifications of long-term exposure to pollution.
Some automobile industry watchers think foreign car manufacturers could benefit at the expense of domestic automakers if the government in China is to take further steps to push low-emission cars and EVs.
The other side of the equation is the restrictions placed on car sales in certain regions in the nation.
China auto sales are expected to rise 8.3% this year
Automakers vow not to give up on weak-selling electrics
While battery range lags, automakers push high-end sports cars at a growing global market
Associated Press
By David Mchugh and Greg Keller, Associated Press 1 hour ago
GENEVA (AP) -- Top automakers are vowing not to give up on weak-selling electric vehicles - even as they unveil an array of powerful luxury cars with conventional engines aimed at a growing global automarket.
BMW AG CEO Norbert Reithofer said Tuesday at the Geneva International Motor Show that his company cannot do without battery-powered vehicles such as its i3 urban compact.
"In the future, electric drive vehicles will be in demand," he said, adding that the Munich-based automaker could not meet its targets to reduce emissions without them.
Only about 75,000 of the 12.5 million vehicles sold last year in Europe were electrics or hybrids. Still, auto companies have sunk billions into developing alternative propulsion vehicles over the long term due to government requirements to limit vehicle emissions and with an eye to restrictions on autos in China due to heavy air pollution.
Daimler CEO Dieter Zetsche said hybrids combining internal combustion and batteries were "truly attractive cars that represent the best of both worlds" and serve as a bridge to future no-emissions vehicles. He cautions that the long-life batteries needed for electrics to conquer the market are at least five years off.
Daimler introduced a rechargeable plug-in hybrid of its C-class sedan.
The calls to keep developing alternative-drive cars come even as high-end sports cars take pride of place at this year's Geneva show. Lamborghini, Ferrari, Audi and McLaren all are unveiling high-speed machines costing hundreds of thousands, while Daimler has the Maybach Pullman stretch limousine, which will go on sale for north of 500,000 euros ($561,000).
Volkswagen CEO Martin Winterkorn stressed his company's commitment to new technologies even as the company's Lamborghini brand showed off its Aventador LP 750-4 Superveloce, a sleek beast of a sports car with an enormous 750 horsepower and a top speed of over 217 mph (350 kph). Volkswagen also unveiled a concept sport coupe that's hybrid driven and can reach 150 mph.
Auto executives were cautiously optimistic for sales this year in China, the United States and Europe — three sales pillars for export-oriented German carmakers. Expectations are tempered by worries over Russia's conflict with Ukraine and economic difficulties in Brazil, another key market.
Analysts at IHS Automotive foresee global car market growth of 2.4 percent, held back by shrinking demand in Russia, which appears headed for recession after a plunge in the value of the ruble. BMW's Reithofer reported the company's sales slide 17 percent there last year.
Auto sales grew last year in Europe by 5.6 percent, the first growth since 2007.
The emphasis at the show on luxury vehicles highlighted the split in the market between steady sales to the wealthy and shakier demand for moderately priced vehicles. Fiat Chrysler Automobiles CEO Sergio Marchionne, whose vehicles are more in the mass-market end of the market, said that "we were scraping the bottom of the barrel but now we're seeing the beginning of recovery. It's not phenomenal but I'll take it."
BYD's 2014 profit drops 21% on stiff competition, soft vehicle sales
Automotive News China | 2015/3/3
BYD Co.'s profit plunged 21 percent to 438 million yuan ($70 million) in 2014, according to the company's preliminary financial report.
The Shenzhen automaker blamed lower profit on fierce competition and slower growth of China's market for gasoline-powered vehicles.
The company did not disclose its 2014 vehicle sales. But LMC Automotive, a market consultancy, estimates that BYD sales of electrified vehicles and gasoline-powered cars declined 14 percent to 437,725 vehicles.
BYD is a leading producer of EVs and plug-in hybrids. According to Haitong Securities Co., a Shanghai-based securities firm, the company sold 20,972 electric vehicles and plug-in hybrids last year.
BYD is listed in Hong Kong and Shanghai. It is partly owned by U.S. billionaire Warren Buffett.
Source: Lithium Power Engineering Published: 2015-03-02 Set font: Xinhuanet
Source: Lithium Power Engineering Published: 2015-03-02 Set font: Xinhuanet
Summary: Days to Power International, a wholly owned subsidiary of Zhejiang days Energy Technology and Zhejiang Condit car industry lithium purchase and sales contracts signed in 2015, the two sides agreed The extensive cooperation and promote the use of electric vehicles in the business models. Keywords: Condi day to power electric vehicles,
lithium [Engineering] days zhuangao Power International, a wholly owned subsidiary of Zhejiang days Energy Technology and Zhejiang Condit car industry lithium purchase and sales contracts signed in 2015, the two sides agreed to electric vehicles applications and business models to promote extensive cooperation. Condi car industry commitment to the sky Energy Technology procurement in 2015 the total value of not less than 260 million yuan of power lithium battery.
Institutional Sponsership is 1 of the many catalyst
moving forward..... It is already here in small quantities and will grow as time moves on.... The reason for this is the numbers will greatly improve over the next few Q's making Kandi an EV powerhouse with many models and a ramp to 500k units, and the only player that's approved in different provenances with subsidies at stake, with an open hand to receive that governmental check. There are no others currently and the the road is hard and long (that's what she said). an Office joke)
The story is really just unfolding to both the institutional players and money managers.... They want to see a little more and they'll come in. And when they do, PPS appreciation will be swift and certain. Make no mistake about it.... It's coming, and it's all upside......
The shorts can wiggle and dance, but the last few drops always stays in their pants.... Get ready!
BULL
1.Goldman Sachs Gao Hua Securities Co Ltd.
Auto parts enterprises electrification most likely to benefit
Gao Hua Securities, said the electric car is the clear trend in the Chinese market; bus / groups may be the first fleet of new energy vehicles to grow. Focus on new energy vehicles, the entire value chain, including SAIC, Geely / Condit and other auto manufacturers are wins (battery management system), Huaxiang (lightweight parts), Shanghai electric drive (motor) and other parts of the production business. BYD / Geely (through its joint venture with Condit's) and other independent electric car leader in the most favorable position.
2. Shun International Securities -Kandi-Overweight Rating
"Condi car industry (KNDI): a new model electric passenger beneficiaries. Company shares left-right business model using time-sharing operating lease Hangzhou micro bus project, due to the effective subsidies and policy support, Kandi.
3. New brokerage,Haitong Securities "overweight" KNDI.
New energy automotive industry: mini electric car barbaric growth
4. Citi Orient Securities Director Qi Hongwei / optimistic about the next two years of barbaric growth
recommended by Citi Orient Securities investment director Qi Hongwei We are optimistic about the next two years of barbaric growth
5. Huatai Securities Research Institute on the Shanghai Exchange. Deputy director, said Yao Hongguang, mini electric car companies have been in the practice of "Redefining production" concept, the industry outlook is very optimistic. In addition, Yao Hongguang mini electric car entrepreneur is also recommended to pay attention to trends and developments in the field of automobiles and the Internet in advance to replicate some excellent factors. The first category is like Condi such enterprises, "micro-bus" is a great business model innovation, Condi second generation product price subsidies after less than 80,000 yuan, with almost the same sense of Tesla technology configuration.
China’s electric vehicle market: Kandi and Tesla
Posted:02/27/15
By:David Floyd
http://wire.kapitall.com/investment-idea/chinas-electric-vehicle-market-kandi-tesla/
Kandi electric vehicles are selling like hot cakes in China. Meanwhile Tesla hits a wall.
Value investors should pay attention when stocks fall steadily from previous highs. Kandi Technologies (KNDI) is a perfect example. Share prices peaked on July 22 at $22.49 and bottomed out on December 16, at a 52-week low of $10.30. Since then, the vehicle maker’s stock has rebounded slowly, the primary reason being that the SEC has closed its investigation into the company.
Kandi is a pure electric vehicle maker that runs a joint venture car-share program in China. The company reported sales of $44.21 million for the quarter ending September 30 and announced in December that it delivered 700 EVs to a distributor in Guangzhou. Altogether, the firm delivered 14,398 units in 2014.
Kandis’ success is in stark contrast to Tesla’s (TSLA) troubles in China. Forbes has called the company’s venture into the Chinese market a “flop,” noting that Tesla China imported just 444 units in December, a sharp drop from 747 the previous month. June Jin, Tesla China’s Vice President of Communications, left the company after less than a year on the job, and CEO Elon Musk has threatened further layoffs.
For the last year, Tesla and Kandi’s stocks are performing roughly the same, but this could change soon. Car-sharing is rapidly becoming an established trend in China, and the government has extended subsidies for electric vehicles to 2020, which may stimulate demand for domestic EV manufacturers.
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China’s electric vehicle market: Kandi and Tesla
Posted:02/27/15
By:David Floyd
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China’s electric vehicle market: Kandi and Tesla
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Kandi electric vehicles are selling like hot cakes in China. Meanwhile Tesla hits a wall.
Value investors should pay attention when stocks fall steadily from previous highs. Kandi Technologies (KNDI) is a perfect example. Share prices peaked on July 22 at $22.49 and bottomed out on December 16, at a 52-week low of $10.30. Since then, the vehicle maker’s stock has rebounded slowly, the primary reason being that the SEC has closed its investigation into the company.
Kandi is a pure electric vehicle maker that runs a joint venture car-share program in China. The company reported sales of $44.21 million for the quarter ending September 30 and announced in December that it delivered 700 EVs to a distributor in Guangzhou. Altogether, the firm delivered 14,398 units in 2014.
Kandis’ success is in stark contrast to Tesla’s (TSLA) troubles in China. Forbes has called the company’s venture into the Chinese market a “flop,” noting that Tesla China imported just 444 units in December, a sharp drop from 747 the previous month. June Jin, Tesla China’s Vice President of Communications, left the company after less than a year on the job, and CEO Elon Musk has threatened further layoffs.
For the last year, Tesla and Kandi’s stocks are performing roughly the same, but this could change soon. Car-sharing is rapidly becoming an established trend in China, and the government has extended subsidies for electric vehicles to 2020, which may stimulate demand for domestic EV manufacturers.
In terms of valuation, Kandi is much more appealing than Tesla. The stock trades at 3.1 times book, compared to 27.1 for Tesla. Kandi’s debt to equity ratio is 0.23, compared to 2.51 for Tesla.
On the other hand, judging by its stock price, Tesla’s branding value is enormous. Founder Elon Musk is confident the firm could be worth as much as Apple by 2025. In the U.S., where Tesla has enjoyed strong demand, mass adoption will ultimately depend on the availability of superchargers.
Bottom line
Neither Tesla nor Kandi’s stock is without risk. Tesla’s valuation is scary, but the firm is expecting better sales for its flagship Model S. Kandi’s business may now be beyond the concerns of the SEC, but renewed worries may emerge. The latter scenario is likely: the short float on Kandi’s stock is 25.50 percent.
Written by Chris Lau.
The 3 Best Small-Cap Tech Stocks to Buy Now
By Motley Fool Staff | More Articles
February 25, 2015 | Comments (0)
It's no secret that small-cap stocks can offer some of the best returns you'll ever see. Starting small leaves lots of room for massive growth and matching stock returns.
But it's also obvious that you must pick your small caps with a steady hand. Lacking the scale and stability of larger businesses, the promise of huge returns is always balanced against the risk of total failure. And that's especially true in the volatile tech sector.
To help you sort the wheat from the chaff, we asked three Motley Fool contributors to present their best picks among small-cap tech stocks right now. They came up with a colorful variety of choices, from Chinese electric car builder Kandi Technologies (NASDAQ: KNDI ) to personal data security expert LifeLock (NYSE: LOCK ) , with in-flight Wi-Fi service provider GoGo (NASDAQ: GOGO ) rounding out the field.
Read on to see how these particular small caps offer more value than risk in the eyes of our analysts.
Image source: LifeLock.
Joe Tenebruso (LifeLock): In 2014, more than 700 major security breaches exposed the personal information of more than 80 million people. Companies like Target and Home Depot made headlines for cybersecurity breaches that resulted in stolen personal data for millions of their customers. Unfortunately, these companies will not be the last to be hacked, and concerns over identity theft will continue to grow as more of the world's data is stored online.
LifeLock -- a leading provider of identity theft protection services -- offers consumers the tools to arm themselves against this growing threat. The company's services go beyond the typical credit card and personal information monitoring offered by the major credit bureaus. LifeLock monitors its subscribers' credit card applications and changes of address, just like the three credit-monitoring giants do; but it also offers unique monitoring services that include tracking Internet ID theft rings and non-credit alerts. Additionally, if a customer is exposed to identity theft, LifeLock will spend up to $1 million to hire recovery experts to help remedy the situation.
LifeLock is growing its subscriber base at a healthy rate, adding approximately 1.2 million gross new members in 2014, and ending the year with more than 3.6 million members. Impressively, LifeLock's members have also been willing to pay more for upgraded services; monthly average revenue per member increased 7% year over year, to $11.43 in the fourth quarter. And maybe most importantly, LifeLock does an outstanding job of retaining its customers, as evidenced by an annual retention rate that has remained above 87% for the past nine consecutive quarters.
LifeLock also offers identity protection services for businesses. Its acquisition of ID Analytics in 2012 gave LifeLock a beachhead in the enterprise identity risk management arena -- one that LifeLock hopes to expand with products such as its recently launched data breach response plans. This new service will help businesses protect their customers and employees from identity fraud by rapidly activating LifeLock if they suffer a data breach.
With a seemingly never-ending number of computer hacks and security breaches, I expect this service to be popular among companies seeking to mitigate the potential fallout of future information theft incidents. And that should help to further fuel LifeLock's already impressive growth.
Anders Bylund (Gogo): If you're a frequent flyer, you're probably familiar with the "gogoinflight" onboard Wi-Fi network. And chances are, you'll only see more of Gogo and its trademark service in the coming years. Even better, Gogo's stock is acting as if the clear skies ahead are nothing but turbulence and lightning storms. When market values get out of touch with business realities in this way, astute investors can get rich by pouncing on silly discounts.
Gogo already serves 10 of the world's largest airlines. That's 6,000 Gogo-connected aircraft, with FTC approvals for 67 different combinations of airlines and their particular aircraft models. With a combination of land-based and satellite networking solutions, Gogo can keep you connected at 10,000 feet almost anywhere.
Last spring, Gogo shares took a massive haircut as telecom giant AT&T announced its entrance into Gogo's market. The death blow was scheduled for 2015, but never fell -- AT&T has abandoned its in-flight networking plans in order to refocus its assets on expanding its regular wireless operations in Latin America.
Gogo shares didn't recover when AT&T backed down. All told, the stock has lost 20% of its value during the last 52 weeks. Investors are nervous because Gogo isn't making money yet.
But that's just standard operating procedure for a fast-growing small cap. I expect Gogo to keep burning cash for a couple more years, while its target market expands. When it's time to start reaping the profits from years of careful service expansion, you'll be glad that you found out about Gogo when the stock was still cheap. Yes, it's a familiar story for growth investors -- and yes, I fully expect it to play out for Gogo, as well.
BYD Qin & Kandi EV Dominate China Electric Car Sales (Chart)
February 21st, 2015 by James Ayre
China is now one of the largest electric car markets in the world. It still has a long way to go to kick gasmobiles off its roads, but even the share of cars that are electric has risen substantially, jumping from 0.08% in 2013 to 0.25% in 2014… based on one estimate, at least. Of course, China is a unique market, and it is dominated by China-built cars. For a full rundown (note: based on a number of estimates), see the EV Obsession repost below.
China electric car sales estimates for 2014 are now in, providing some insight into the fast-growing market. (It should be noted here that some of these figures are estimates, as indicated by the “*” to the right of the name.)
Overall sales appear to have more than tripled as compared to the previous year, with total market share climbing to 0.25% — up from 0.08%. Respectable growth.
China's Anti-Pollution Efforts Boosted by Purchase Tax Exemption
Mason Coltrane | Feb 23, 2015 11:06 PM EST
Read more: http://en.yibada.com/articles/15031/20150223/chinese-anti-pollution-efforts-boosted-by-purchase-tax-exemption.htm#ixzz3ShB7O0Au
http://en.yibada.com/articles/15031/20150223/chinese-anti-pollution-efforts-boosted-by-purchase-tax-exemption.htm
Fixen to blow the roof off this monster........
BULL
Kandi Technologies: A Significant Obstacle Has Been Hurdled
Feb. 18, 2015 5:24 PM ET | 63 comments | About: Kandi Technologies, Corp (KNDI)
Disclosure: The author is long KNDI.
Kandi announced Tuesday that the SEC has finished its probe into the company, which has been ongoing since November 2013.
The SEC does not intend to recommend that any charges be brought against the company.
This is great news for Kandi which should see a rise in stock price now that the air has been cleared.
On Tuesday, Kandi Technologies (NASDAQ:KNDI) announced that the SEC investigation into the company that began in November of 2013 has been completed and that the agency found no reason to bring charges against the company. This is welcome news for KNDI investors who know all too well the intense scrutiny that the company has been under since going public.
As the one-year chart shows, KNDI stock has been very volatile. This volatility has subsisted even though the company has been reporting positive earnings results that all point to increased revenue, profit and margins in the future. The Chinese government is still throwing support behind the electric car movement due to widespread pollution in the country, and KNDI's car-sharing program is successful and expanding. All of the fundamentals have been in place for KNDI to succeed, but the fear of regulatory action has been keeping a ceiling on the stock price.
Now that the rumors of shady business practices, cooking the books, etc. have been put to rest, the company can succeed on its own merit. Of course, it would be too optimistic to hope that all of the naysayers will go quietly, but now that a thorough regulatory agency like the SEC has cleared KNDI, all of those rumors and claims of illegal business practices will hold less weight than they did previously. If the SEC had full access to KNDI's records and operations and didn't find anything of note, it is doubtful that an individual or website that has no access to KNDI's private records could unearth some smoking gun.
This decision should improve investor confidence regarding KNDI, which is invaluable considering that the company's (unwarranted) negative reputation has been a thorn in its side since its reverse merger. The company's reputation has kept the stock trapped below a price ceiling, and I am confident that this ceiling has now been eliminated and that KNDI investors will see the fruits of this decision in the near future. A short squeeze is also possible as KNDI currently has 22.2% of its float short as of January 30, which makes it the 151st most shorted stock across major exchanges. As the market realizes the upward trend of KNDI's financials and with the threat of regulatory action now greatly diminished, the company's stock should see gains in the future.
Conclusion
The SEC announced that its investigation into KNDI is now closed and that it doesn't recommend bringing charges against the company. This decision should allow the company to overcome claims of illegal business practices and allow the stock price to rise without investors fearing regulatory action.
I'm Ready.......
BULL
A CHINA GLUT?
Automakers struggle to balance production with demand
Bloomberg | 2015/2/20
When consultant Bill Russo visited Chery Automobile's headquarters in China's eastern Anhui province three years ago, he listened to the company's plans to expand its factories to make as many as 1 million vehicles a year.
But demand didn't grow as planned. So Chery today has the capacity to make 900,000 vehicles annually -- twice the number of cars it sold last year. Sales have slumped by one-third since their peak in 2010.
"Chery is a classic case" of overcapacity, says Russo, a former Chrysler executive who's now a Shanghai-based managing director at consultant Gao Feng Advisory. "The pressure is that once they receive the permission [from government authorities] to build, they feel like they have to build."
Chery didn't respond to requests for comment about its sales falling short of planned capacity.
Domestic and foreign-based carmakers are building more factories in China than anywhere else, a construction binge that could hurt margins in what remains one of the world's most profitable vehicle markets. By 2017, there will be 140 assembly plants in China, compared with 123 at the end of 2014, estimates JSC Automotive Consulting.
According to IHS Automotive forecasts, factories across the mainland in 2015 will be able to build 10.8 million more vehicles than will be sold in Greater China. In North America, however, IHS expects plants to churn out about 3.2 million more cars this year than the factories were intended to produce when they were built.
Overcapacity is only expected to get worse for Chinese carmakers. China will have 11.4 million vehicles' worth of idle capacity by 2017, more than double that of European automakers, according to data from JSC and Deloitte Consulting.
Some carmakers already are regretting plans for Chinese plants that will open in the next few years, says Jochen Siebert, Shanghai-based managing director of JSC, who declines to name the companies. "But that decision has been made," he says. "It's done; they cannot backtrack."
Plans for most of the factory space built in China in the past few years were put in motion during the global recession, when China proved to be a godsend while General Motors and Chrysler were being bailed out by the U.S. taxpayer and Europe's auto sales seemed in free fall.
The trouble is, too many carmakers sought the same refuge. "When you get too many competitors with too much capacity, there's just not enough growth to sustain everybody," says Thomas Callarman, Shanghai-based director of the China Europe International Business School's Centre for Automotive Research. "They're all smart people, and they look at the right things, but I think they read the tea leaves wrong."
For now, the China car market remains profitable. Chinese automakers accounted for 7 of the 10 carmakers with the highest profit margins in the world, with BMW's Chinese partner, Brilliance China Automotive Holdings, topping the ranks at 82 percent in the past year, according to data compiled by Bloomberg Intelligence.
Toyota Motor's margin was 7.6 percent. Hyundai Motor and Volkswagen's Audi count China as their largest market, with Subaru maker Fuji Heavy Industries standing out as the only car manufacturer among the 10 most profitable that doesn't have a factory in China.
Foreign carmakers have been among the most enthusiastic factory builders in China, with Hyundai, Renault, and Fiat Chrysler Automobiles' Jeep among those that have announced plans or are already building in China.
General Motors soon will sell Buicks made at a plant that opened last month, with plans to open a Cadillac factory later this year. GM has 22 factories on the mainland. Volkswagen, which is vying with Toyota and GM for the global auto sales crown, has 28 plants in China and will open three more within the next few years.
Jochem Heizmann, who heads Volkswagen's China business, told reporters in November that the automaker has decided to expand its China capacity to more than the previously targeted 4 million autos a year by 2018 because it couldn't build enough to keep up with demand.
In the next few years, however, increased competition amid slowing growth in car sales will result in lower prices, says Yang Yipeng, a Beijing-based analyst at Goldman Sachs' Chinese affiliate. As the world's second-largest economy cools, vehicle sales are forecast to expand this year at just half of 2013's 8 percent growth, to 21.3 million passenger vehicles.
General Motors President Dan Ammann said in January that he expects China's sales expansion to slow over the next few years after being the main engine for the global industry's growth for 15 years. Volkswagen in November also said the pace of expansion is becoming "more normal" in China.
The spare capacity may force carmakers to increase sales incentives, hurting profit margins, Barclays says. "This is a heavy asset industry," says Song Yang, an analyst at Barclays.
"When utilization trends down, margins will trend down." Already, car dealerships in China are asking for financial support and lower sales targets from carmakers after a combination of rapid expansion of sales networks and increased restrictions on vehicle ownership by city governments hurt their profits.
Last month, BMW agreed to pay 5.1 billion yuan ($815 million) to its dealers. Toyota will give 1.2 billion yuan to the dealers of one of its joint-venture partners, FAW Group, while Renault, which is building a plant that opens in China next year, said it will give its distributors more rebates.
Just look like an actual depiction of what's happening with KNDI, with a little humor of course......
Takke it with a grain of salt if you like....
But the fact remains that stock are surely manipulated by big money....
BULL
It's going to be Fun.......
For Longs....
BULL
Billionaire, Li Shufu, CEO of Geely Automobile comments on Kandi CEO, Hu Xiaoming
Li Shufu, CEO of Geely Automobile Holdings, was asked during his interview about who in his mind is the most admirable and commendable Zhejiang entrepreneur, Mr. Li hit his ”like” for Hu Xiaoming, Chairman of Kandi Electric Vehicles Group. “Mr. Hu Xiaoming is the creator of “Car-share Program”. He is a noble partner, as well as a good friend. He’s got an unblemished vision toward Chinese EV market. We have achieved the success of “Car -share Program” together from scratch. Mr. Hu is a connoisseur in the automobile industry, and his passion for fabricating the foundational EV market in China has been remarkable. We share the same passion and value and together we foresee the imminent future of EV market potential. He has always got my full support.”
Kandi's new pure electric van is listed on ChinaCar
http://www.chinacar.com.cn/zhuanyongche/kangdi_2381/KD5023XXYBEV_272403.html
COMMENT
Electric car rental business is poised to grow in China
Yang Jian | 2015/2/13
SHANGHAI -- Last weekend I met a friend in a newly developed industrial zone in suburban Shanghai. While we were sitting in a roadside teahouse, I saw a small electric car pass by.
The car was built by Kangdi Electric Vehicle Group Co., a subsidiary of Zhejiang Geely Holding Group Co. It is only for rent, not for sale, my friend said.
This could be the next big thing for China's embattled electric vehicle producers. Automakers have come to view green vehicles as products more suitable for rent than sale. Three state-owned automakers have established partnerships this year to rent EVs.
On Sunday, Beijing Automotive Industry Group Corp. opened a joint venture in Beijing with Taiwanese electronic component supplier Foxconn Technology Group Co. This month, the 100 million yuan ($16 million) partnership plans to rent 500 compact electric sedans to motorists in Beijing.
Last week, Chery Automobile Co. signed an agreement with Chinese car rental company Yongche and telematics supplier Pateo Co. of Shanghai to develop "smart" EVs for car-sharing and rentals.
And in January, SAIC Motor Corp. partnered with STGCON New Energy Technology Co. -- a Shanghai-based supplier of battery charging equipment -- to launch a car rental business in several major cities.
SAIC will supply its Roewe E50 small electric cars and Roewe 550 compact plug-in hybrids.
The pioneer in this niche is Kangdi, a privately owned company that started renting EVs in 2013. Now, a slew of state-owned automakers are emulating Kangdi. This is a healthy sign for the EV industry in China.
To date, EVs still are too expensive for the average consumer. For example, the two-seat Kangdi microcar costs 133,000 yuan ($21,300). Even after government subsidies, it still costs twice as much as a gasoline-powered subcompact produced by Chinese carmakers.
Rentals are a smart way to solve the pricing problem, since motorists can rent an electric car for a few hundred yuan per month. But what about an EV's limited range?
Motorists who rent electric cars mainly drive in downtown areas or suburbs of big cities, so they don't need to drive long distances. However, there is still one problem for the rent-an-EV industry: a shortage of charging stations.
In China's big cities, most people live in high-rise apartment buildings, and public
charging stations are still scarce. So it will be difficult for EV rentals to blossom into a multibillion yuan business any time soon.
But Beijing is trying to fix that problem. This year, the central government will start subsidizing municipalities to build more charging stations. The subsidies will be based on the number of EVs and plug-in hybrids sold by each city.
Over the next few years, the cities will construct a large number of public battery-charging facilities. And when that happens, China's EV rental business will find itself on the fast track.
Pictured: Yang Jian is managing editor of Automotive News China.
Settlement Date Short Interest Avg Daily Share Volume Days To Cover
1/30/2015 7,254,117 769,505 9.426991
1/15/2015 7,750,074 829,660 9.341265
To speed up the construction of the city's bus station micro Condit, promoting the project put into operation as soon as possible, to build the country's first micro-buses county pilot project, to further promote the popularization and application of new energy vehicles in the city, in 2015 2 months 5 days, Rugao Municipal Government Deputy Mayor Lu Xuesong led the Commission by letter, the relevant departments and units of the leadership lived Authority, Planning Bureau, Land Bureau, Public Security Bureau, Bureau of Transportation, Urban Management Bureau, the power company, Economic Development Zone, Hangzhou Condi micro bus company field research.
http://jxw.nantong.gov.cn/art/2015/2/10/art_23103_1824967.html
Left, right, Zhejiang Electric Vehicle Service Co. Raozheng Hua, general manager of the micro-bus project construction site in Hangzhou, the project operator, real-time monitoring, vehicle maintenance and other relevant circumstances, deputy mayor of Condi???micro bus project to promote energy conservation, effect of the convenient travel, eco-city construction made ??fully affirmed, and has a "longevity" reputation of Rugao complement each other. At the same time in order to further accelerate the construction of micro-bus Rugao Condit project, clear the city departments work units next move, asked relevant departments to further unify their thinking units, joint action to promote collaboration, to support the implementation of the project, the municipal new energy vehicles The Office, led the project to promote the establishment of liaison meeting mechanism, form a concerted effort to accelerate the project. Also requires companies to develop the project forward schedule and do a comprehensive plan for the site in terms of planning, construction and other facilities, according to the situation on the ground step by step, to build a mature one, and strive toput into operation in 2015 within the city of 1,000 new energy vehicles micro bus car, form a demonstration effect for the city of new energy vehicles in the field of private consumption to accelerate the application with a good head, good start.
Why does ZZY need to hire 70 plus employees in Hangzhou? Maybe just maybe, Hangzhou is about to finally release local subsidies. Some have said this number could be over 70 million... Lets see .. if they get a 70 million dollar check they might,... just maybe,.. accelerate purchasing EVs and open many more locations.
http://hangzhou.hbrc.com/company/detailcompInfo-117834-263283.html
Tesla Motors CEO Elon Musk May Fire Overseas Executives on Dismal China Sales,
http://www.benzinga.com/news/15/02/5228729/tesla-motors-ceo-elon-musk-may-fire-overseas-executives-on-dismal-china-sales-acc
Steve LeVine became interested in batteries in the wake of the financial crisis. LeVine is the Washington correspondent for Quartz, a news site covering the global economy, and he sensed, he told me recently, “a loss of confidence in the U.S. in our ability to create a real economy” — one based not on financial instruments or a real estate boom, but real products that would help create entire new industries.
The battery could be such a product. Not just any battery, of course, but a battery designed for electric cars and capable of powering them for 200 miles or even 300 miles per charge. A battery that could compete with — and eventually replace — the internal combustion engine and transform the electric car from a niche product to a mass-market automobile.
Joe Nocera
Business, regulation, Wall Street, the N.C.A.A. and guns.
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Such a battery does not yet exist. But if such a thing could be invented, it might well develop into a $100 billion-plus market in its first five or six years of existence, according to LeVine. A battery like that could vastly improve energy security. And with so much less exhaust spewed into the air, the effect on climate change could be lowered. The United States is trying to develop such a battery, and so are many other countries.
That interest led LeVine to the Argonne National Laboratory, one of the Department of Energy’s 17 national labs. For the better part of two years he was given access to its Battery Department, emerging with a captivating book entitled “The Powerhouse: Inside the Invention of a Battery to Save the World.”
With the closure or winnowing of many of corporate America’s industrial labs — not least the famed Bell Labs, which is a shadow of its once-mighty self — industry now relies heavily on the federal government’s national labs for basic scientific research. Thus it was that scientists at Argonne, which is in the Chicago suburbs, discovered a battery chemistry that greatly improved electric car performance, called NMC (for nickel-manganese-cobalt). The Chevrolet Volt uses a version of NMC, as will, reportedly, the next generation of Nissan Leafs. Which also suggests its drawback: the Volt only gets about 40 miles on pure battery power alone before it switches to its gasoline-powered engine.
The core of LeVine’s book is about the effort to take the next big step: create a battery that can achieve five times that mileage, while still remaining stable — stability is always a big issue with batteries — and affordable. The scientists at Argonne — some of them larger-than-life figures in the battery world — labeled this effort NMC 2.0. Though the writing can get technical at times, LeVine still tells a rollicking good tale. The scientists make a number of painstaking advances, inching the chemistry forward, only to discover problems. One such problem is called “voltage fade” — an instability that is serious enough to make the battery unusable in an electric vehicle.
There is also a private company in LeVine’s narrative, a start-up called Envia Systems. Licensing the advances made by Argonne, it claims to have solved the rest of the puzzle. Its executives are persuasive enough that General Motors contracts with them to create the battery for an electric car it is calling, internally, the Bolt, which is supposed to get 200 miles per charge.
Continue reading the main story
Continue reading the main story
LeVine told me that, for a long time, he fully expected that his book would end with Envia solving the riddle of NMC 2.0, and having a wildly successful public offering. But that’s not what happens. As G.M., Argonne, and LeVine eventually discover, the Envia claims were wildly exaggerated. After G.M. found out that the company wouldn’t be able to deliver after all, it ended its contract with the company and looked to LG Chem Ltd., the big South Korean company, to supply the battery.
Continue reading the main story
Recent Comments
tim storer
6 minutes ago
I am all for energy innovation, and battery research is an important part of the mix. But why are you rummaging around in the battery...
tim storer
8 minutes ago
I am all for energy innovation, and battery research is an important part of the mix. But why are you rummaging around in the battery...
Patricia McArdle
9 minutes ago
When Dwight D. Eisenhower was a young man in Abilene, Kansas, he could often be seen driving an electric car around town. It was a 1914...
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Indeed, by the end of the book, scientists still haven’t solved the voltage fade problem, and NMC 2.0 seems as far away as ever. Argonne wins a competition set up by the Department of Energy to create a “Battery Hub,” in which more than a dozen national labs, universities and corporate partners will work together to completely rethink their approach to the conceptual leap the government — and everyone else — is hoping for. In effect, they’re starting over.
There is grist in “The Powerhouse” for critics of President Obama. He pushed for battery innovation just as he pushed for solar innovation. The latter gave us Solyndra; the former gave us Envia. Financing efforts to invent a new battery is, without question, a form of industrial policy.
But LeVine thinks this view is misguided, and so do I. “France and Germany and China have renewed their push for electric cars,” he says. “The stakes are so high and the dividends so rich that they keep going” — even if the quest seems, at times, quixotic.
LIFTOFF is near.......
Loaded up 60m....
BULL
Last quarter of Shanghai new energy vehicles to avoid purchase tax rankings for the first
Source:The economic observer 2015-02-09 15:23:45 Author:Weeks and double
Recently, the Ministry for equipment industry Division in the Ministry's official website announced the September 2014 – December new energy vehicles are exempt from vehicle purchase tax, shall be exempt from the new energy automobile purchase tax in effect on September 1 of last year, the Ministry of the actual published data for the 2014 event.
The Ministry released the news that the State Council Executive meeting decided that since the end of September 1, 2014 to 2017, licensed sales in China (including imports) of pure electric and eligible plug-in electric (including additional program) new energy vehicles for three types of hybrid, fuel cell, shall be exempt from tax on vehicle purchases. By the end of 2014, Ministry of industry and information technology, the State administration of taxation has issued three batches are exempt from vehicle purchase tax models directory, there are 377 models of the 57 companies listed in the catalog.
According to statistics from the State administration of taxation, September 2014 – December 29 provinces new energy vehicles are exempt from vehicle purchase tax formalities has a total of 39,400 for new energy vehicles are exempt from vehicle purchase tax, where 33,800 vehicles for passenger cars, commercial vehicles of 5,615.
Released by the Ministry of provincial data tables, in Shanghai in September-December last year to the cumulative tax 8,740 won first place, to 5,799 vehicles took the second place in Jiangsu, Beijing 5,526 finished third.
Car rankings released by the Ministry, BYD in September-December last year to the cumulative tax 10,359 won first place, BYD's dual-mode plug-in hybrid electric powered the largest share of the Qin dynasty, 8,860 vehicles in December, even to 3,187 units. Second named Geely kangdi, owned by electric cars, to 9,084. Third place for baic, to 4,984.
Insiders pointed out that two great link first, Qin in Shanghai, BYD's win is hot because Qin in Shanghai at around 80,000 yuan worth of free licenses, while Qin could not even plugged in and running, compared to pure electric cars more convenient.